11 May Buying Land Before Hiring a Custom Home Builder
Are you thinking about purchasing a piece of land before hiring a custom home builder? There’s a positive and negative side to doing that. You might save some money and be more in control by purchasing land first, but a custom home builder brings extensive knowledge to the process of purchasing land that you’ll find invaluable:
The Pros of Buying Land Before Talking to A Custom Home Builder
While there are probably more benefits of hiring a custom home builder before you purchase a lot to build on, there are some advantages to purchasing land before you hire a builder:
1. You’re in complete control.
While a custom home builder will always provide advice on what lot or piece of land you should purchase, they might also push you one direction or another. By purchasing the land before hiring a builder, you’ll be in complete control of where the property is located.
2. You can spread out your expenses.
Maybe you aren’t quite ready to build your custom dream home, yet. However, you might be in a situation where you can buy the land you want to build your future home on. Or, maybe the piece of land you’ve always wanted is finally up for sale. Purchasing the land before hiring means you can spread out the costs associated with building a custom home and purchasing land at the same time.
3. You may secure better loan terms.
Since you aren’t purchasing land and building a house all at once, you may be able to secure better loan terms for the property. This will allow you to save money in the long run and potentially secure better loan terms for the construction of your custom home.
The Cons of Buying Land Before Talking to A Custom Home Builder
There are certainly some benefits to purchasing land before hiring a custom home builder, but doing this also comes with several disadvantages that could cause problems down the road.
1. You may not have the support you need in finding a piece of property.
Sure, you’ll hire a real estate agent to help you find the right piece of property, but that real estate agent may not know anything about building a custom home. A custom home builder will help you find a lot that fits your criteria for land while also being a great place to build your custom home.
2. The details of building on your lot are more complicated than you might think.
While you may love your piece of property, it may not actually be the place to build. There are government codes and ordinances that have to be considered before you can build. A custom home builder can help ensure the lot you purchase will actually meet those government and building requirements.
3. You won’t have a firm grasp of building material values and fluctuations.
You might think you understand the cost of your lot plus the cost of your custom home being built, but the truth is prices fluctuate constantly. Locking into an agreement and estimate with a custom home builder will allow you to better judge how much everything will cost when it’s all said and done.
Are you ready to start on the custom home building process? At Michael and Associates, we can guide you through purchasing land, designing a floor plan, and completing the construction of your dream home. We’re ready to talk about your ideas whenever you are. Contact us to get started!